FG AccumulatorPlus 10. Flexible Premium Fixed Deferred Indexed Annuity Options for your retirement planning

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1 FG AccumulatorPlus 0 Flexible Premium Fixed Deferred Indexed Annuity Options for your retirement planning ADV 06 (-0) Fidelity & Guaranty Life Insurance Company Rev

2 FG AccumulatorPlus 0 Flexible Premium Fixed Deferred Indexed Annuity Options for Your Retirement Planning FG AccumulatorPlus 0 is a flexible premium fixed deferred indexed annuity What is that? Flexible Premium: This means you can make multiple premium payments. Deferred: This means income does not begin immediately. Also, you pay no current income tax on interest earned. Taxes are deferred until you withdraw your earnings. Fixed: This means that Fidelity & Guaranty Life Insurance Company guarantees a fixed rate of interest. Indexed: This means that it offers indexed interest crediting options. The indexed interest crediting options will earn interest that depends on how a market index performs. You could earn 0% indexed interest. You could never be credited less than 0%. The annuity does not participate in any stock, bond or equity investments. You aren t buying shares of stock or an index. Dividends paid on the stocks on which the indices are based don t increase your annuity earnings. Annuity: An annuity is a vehicle to provide payments to the holder at specified intervals, usually following retirement. It is designed to be a long-term retirement tool and not to be used to meet short-term financial goals. In this document are important points to think about before you buy the FG AccumulatorPlus 0 annuity from Fidelity & Guaranty Life Insurance Company. Fidelity & Guaranty Life has prepared this summary to help you understand FG AccumulatorPlus 0 s many options and advantages. Please confirm your understanding by signing the enclosed confirmation statement. Product features include: Minimum guarantees that protect your principal Upside interest potential through four indexed-linked interest crediting options Downside protection any indexed-linked interest credited is never taken away, even if the index declines. A fixed interest option that provides a certain rate one year at a time. Liquidity for life s unexpected events. Surrender charges are waived for unemployment, diagnosis of a terminal illness or nursing home confinement. These riders (addendums to the contract) provide full access to your account value without penalty. (Certain conditions may apply and riders may not be available in all states.) Guarantees The Guaranteed Minimum Surrender Value is the minimum you would receive if you surrender your contract. It is meant to provide a known value, a floor, and is required of products of this type. The minimum guaranteed surrender value is 87.5% of your premiums compounding at the Minimum Guaranteed Surrender Value (MGSV) rate, less rider charges if any.* That rate is between % and 3% is set at issue and fixed for the life of the contract. * Rider charges from MGSV are not applicable in all states.

3 . How does FG AccumulatorPlus 0 HOW WILL THE VALUE OF MY ANNUITY GROW? work? Five Interest Crediting Options That Offer Upside Potential (Subject To Caps/Declared Rate) Four of the five interest crediting options in your annuity will earn interest based on formulas linked to changes in an index. These are subject to a limit or cap rate (please see Interest-Crediting Options through 4 in the side box). You choose which Interest-Crediting Options you wish to participate in. Indexed interest, if any, is credited on each indexed crediting option s anniversary and, because indexed interest will never be less than 0%, your account value will never decrease due to a declining index. The fifth interest crediting option is the Fixed Interest Option. The initial interest rate is GUARANTEED for one year, and the rate thereafter is declared in advance and guaranteed in one year increments. The rate is guaranteed never to be less than % to 3%. FG AccumulatorPlus 0 offers you the ability to reallocate your account value between these options at the end of each crediting option anniversary. You can also change your allocations for future premium at any time. Indexed-Linked Interest Crediting Options 3 One-year monthly point-to-point with a cap 3 One-year annual point-to-point with a cap 3 One-year monthly average with a cap 3 Point-to-point fixed declared rate on index gain crediting option Fixed Interest Option The interest rate your annuity is issued with is guaranteed for one year. After the first contract anniversary, we will declare, on or before each contract anniversary, a new interest rate that is guaranteed for one year. Indexed-Linked Interest Crediting Options: minimum caps Each interest crediting option has minimum caps per year. These are the lowest the rates could be set at each crediting option anniversary. 3 One-year monthly point-to-point with a cap. Minimum cap per year: % 3 One-year annual point-to-point with a cap. Minimum cap per year: 3% 3 One-year monthly average with a cap. Minimum cap per year: 3% 3 Point-to-point fixed declared rate on index gain crediting option. Minimum declared rate per year: % The following hypothetical example illustrates how the account value of an FG AccumulatorPlus 0 can increase but not decrease in value assuming no withdrawals and no surrender charges. It assumes a $00,000 premium. The example is not a representation of future performance. $40, % 6.00% 6.00%.6% 0.00% $30, % $0,000 $0,000 $00,000 $90,000 $80, % 6.00% 6.00% 6.00% 0.00% 0.00% 0.00% 5.55% -.8% 8.44% -0.0%.94% -.5%.65%.6%.59%.6% -35.6% $70,000 //999 //000 //00 //00 //003 //004 //005 //006 //007 //008 //009 //00 //0 Index growing with annual change in S&P 500 index Account Value MGSV (before application of Surrender Charges) Index growing with annual change in S&P 500 Index: 00% of premium reflecting fluctuation in the S&P 500 Index for the dates indicated. Account Value: 00% of premium accumulating at an indexed interest rate based on an annual point-to-point crediting option with a 6% cap and actual S&P 500 values for the dates indicated. Minimum Guaranteed Surrender Value: 87.5% of premium accumulating at. Actual guaranteed accumulation rate will be between % and 3%. The S&P 500 Index is an index measuring the performance of selected stocks, excluding dividends; it is not an investment. Whereas investments in stocks underlying the S&P 500 Index can lose value, including principal, the principal value of the annuity is guaranteed.

4 FG AccumulatorPlus 0 See the Indexed Interest attachment for detailed descriptions of the indexed interest crediting options. All of the indexed interest crediting options may not always be available for allocations. You may move your account value among the interest crediting options at the end of index crediting periods. Any premium paid between contract anniversaries is allocated to the fixed interest option until the next applicable indexed crediting period at which time your premium will be allocated to the chosen indexed interest option. Annuities are issued with an effective date of the st, 8th, 5th or nd of the month. Premiums are held without interest until the next available effective date. Special rules apply if one of these dates falls on a weekend or holiday. If you withdraw money from an indexed interest crediting option on any day other than an interest crediting option anniversary you will not earn indexed interest on the amount you withdraw. The minimum initial premium to purchase this contract is $0,000 and the minimum allocation to any option is $,000.. WHAT GUARANTEES ARE INCLUDED IN MY ANNUITY? 87.5% of Your Premium Compounding at a Rate Between % and 3% as a Minimum Guaranteed Surrender Value (MGSV) Your annuity contains a protective floor. The minimum guaranteed surrender value on a full surrender is 87.5% of premium, plus daily interest accruing at the MGSV accumulation interest rate, less rider charges if any.* That rate is between % and 3%, is set at issue and fixed for the life of the contract. The MGSV is reduced by prior withdrawals. You will be paid the greater of the account value, less any applicable surrender charges, and the MGSV. 3. HOW DO I GET INCOME FROM MY ANNUITY? There are several ways to access your account value, including transforming your account in to annuity payments. If you take withdrawals and it is during the surrender charge period, you may be assessed a surrender charge. Partial Free Withdrawals Each contract year (after the first contract year), you may withdraw, surrender charge free, 0% of your account value as of the prior anniversary, less any free withdrawals taken during the current contract year. If your annuity was issued in connection with a tax qualified plan, you may be required to take minimum distributions beginning at age 70½. Partial Withdrawals and Option for Systematic Withdrawals Before annuity payments begin you may take up to four withdrawals per year ($500 minimum), or you may take regular systematic withdrawals on a monthly, quarterly, semi-annual or annual basis ($00 minimum). During the surrender charge period, withdrawals that exceed the annual 0% free partial withdrawal amount will be subject to surrender charges. Interest will not be credited to any amounts withdrawn if taken prior to the crediting interest date for the options you have chosen and are currently in. Annuity Payouts You must begin receiving annuity payments no later than the maturity date. The maturity date is fixed at contract issue and is no later than the contract anniversary following the annuitant s (or the oldest annuitant s if a second annuitant is named) 00th birthday. Annuity payments are based on the surrender value.** An annuity option may be changed any time before annuity payments begin. If your annuity was issued in connection with a tax qualified plan, you may be required to take minimum distributions beginning at age 70½. * Rider charges from MGSV are not applicable in all states. ** FL and TX require waiver of surrender charges when payments begin. 3

5 4. DO I PAY ANY FEES OR CHARGES? Fees, Expenses & Other Charges There are no initial sales charges or fees. Your full initial premium is available to earn interest from the effective date of your annuity (surrender charges apply for the first ten years on full or partial surrenders). SURRENDER CHARGES What happens if I take out some or all of the money from my annuity? A surrender charge applies for the first ten years on full or partial surrenders in excess of the 0% annual free amount allowed, and in calculating the annuity payments unless they do not apply under the conditions below. Annuity Year: Surrender Charge: % % 0% 9% 8% 7% 6% 5% 4% 3% 0% The surrender charge equals the surrender charge percentage for the applicable year multiplied by the amount of account value that exceeds the penalty free amount available. Please review your annuity for the appropriate surrender charge schedule. Payment In The Event Of Death Should you die before annuity payments begin, we will pay the greater of the account value and the MGSV to the beneficiary named in your annuity. We will also pay a partial interest credit, if applicable, up to the date of death. Account Value The annuity s account value before the date annuity payments begin equals 00% of premium, plus interest credited to each interest crediting option, less any withdrawals. Surrender Value The annuity s surrender value is the greater of: Account value, less surrender charges; or Minimum guaranteed surrender value. Is there any way to withdraw money during the surrender charge period without paying a surrender charge? Free partial withdrawals are available each contract year, after the first contract year, during the surrender charge period and you may withdraw up to 0% of your account value as of the prior anniversary. Waiver of surrender charge riders listed below. Nursing Home Benefit Rider If you are confined to a licensed nursing home for more than 60 days, and your confinement begins at least one year after the annuity s effective date, surrender charges will be waived on withdrawals made during the period of your confinement. Terminal Illness Benefit Rider If a licensed physician certifies that you have been diagnosed with an illness or condition that causes your life expectancy to be less than one year, and the diagnosis takes place at least one year after the annuity s effective date, surrender charges will be waived during this period of terminal illness. Unemployment Benefit Rider If you become unemployed and remain so for at least 30 consecutive days, and your unemployment takes place after the annuity s effective date, surrender charges will be waived during this time of unemployment as long as you are under the age of 65 at the time of your request. Surrender charges are not imposed if you die. If your spouse as beneficiary elects to continue the contract and subsequently surrenders, your spouse will be subject to a surrender charge if within the surrender charge period. Lower surrender charges may apply in some states. They are declining for ten years, and are: 9%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, %, %, 0%. Please refer to your Fidelity & Guaranty Life representative for availability in your state. FG AccumulatorPlus 0 4

6 5. DOES THIS AFFECT MY TAXES? How will annuity payments and withdrawals from my annuity be taxed? The annuity is tax-deferred, which means you don t pay taxes on the interest it earns until the money is paid to you. When you take payouts or make a withdrawal, you pay ordinary income taxes on the earned interest. Withdrawals are treated as coming from earnings first and then as a return of your premium. Payments under an annuity payment plan are treated as coming partially from earnings and partially as return of premium. You may pay a federal income tax penalty on earnings you withdraw before age 59 ½. If your state imposes a premium tax, it may be deducted from the money you receive. You may exchange one tax-deferred annuity for another without paying taxes on the earnings when you make the exchange. Before you do, compare the benefits, features, and costs of the two annuities. You may pay a surrender charge on the annuity you are exchanging. Also, you may start a new surrender charge period in the new annuity. Does buying an annuity in a retirement plan provide extra tax benefit? Buying an annuity within an IRA doesn t give you any extra tax benefit. The annuity is tax-deferred, which means you generally don t pay taxes on the money until it is paid to you. Payments under an annuity payment plan are generally entirely taxable under most IRA plans. Choose the annuity based on its other features and benefits as well as its risks and costs, not its tax benefits. Please consult your tax advisor regarding your unique situation. Internal Revenue Code provides that if an annuity is held by a non-natural person and such person is not holding as an agent for a natural person, the contract shall not be treated as an annuity contract for income tax purposes. Taxation on IRA plans varies depending on the type of IRA, traditional IRA, Roth IRA, SEP IRA you own. 6. WHAT ELSE DO I NEED TO KNOW? Other Information This annuity is designed for people who are willing to let their assets build for at least ten years. We may change your annuity contract from time to time to follow federal or state laws and regulations. If we do, we ll tell you about the changes in writing. You have a set number of days (at least 0*) to look at the annuity after you buy it. If you decide during that time that you don t want it, you can return the annuity and get your premium back. Read the cover page of your annuity contract as soon as you receive it to understand how many days you have to decide if you want to keep it. At least once each year, we will send you a report of the current annuity values. We pay the agent, broker, or firm for selling the annuity to you. Compensation is not deducted from your premium. Required Minimum Distributions Certain tax qualified annuities are subject to required minimum distributions which generally require that distributions begin no later than April st of the year following your attainment of age 70½ and that amounts be paid to you over a period not longer than your life expectancy. Your annuity values are guaranteed by Fidelity & Guaranty Life. As a legal reserve company, Fidelity & Guaranty Life is required by state regulation to maintain reserves equal to or greater than guaranteed surrender values. 5 *A 0 day free look period applies in the state of ID.

7 7. WHAT SHOULD I KNOW ABOUT FIDELITY & GUARANTY LIFE? Incorporated in 959, Fidelity & Guaranty Life Insurance Company has a solid commitment to serving the individuals it knows best middle market consumers seeking the safety, protection, accumulation and income features of secure life insurance and annuity products. Fidelity & Guaranty Life offers its series of focused life insurance and annuity products through its network of independent marketing organizations. Insurance products are offered through Fidelity & Guaranty Life Insurance Company in every state, other than New York, as well as the District of Columbia. In New York, products are offered through a wholly owned subsidiary, Fidelity & Guaranty Life Insurance Company of New York. Indexed Interest attachment One-year monthly point-to-point with a cap The monthly point-to-point index percentage change is determined by adding months of monthly index percentage changes. Positive monthly percentage changes are limited to the declared monthly percentage cap; negative monthly percentage changes are not limited. If the sum of the monthly index percentage changes is negative, 0% will be used as the index percentage change. The resulting index percentage change is multiplied by the option s account value to determine the index interest credit. One-year monthly average with a cap The one-year monthly average index percentage change is determined by first calculating the average of months of monthly index values. This average is used to calculate the index percentage change over a one-year period relative to the prior year s index value, limited to the declared annual percentage cap. If the index percentage change is negative, 0% will be used as the index percentage change. The resulting index percentage change is multiplied by the option s account value to determine the index interest credit. One-year annual point-to-point with a cap The one-year annual point-to-point index percentage change is determined by subtracting the prior year s index value from the current year s index value then dividing by the prior year s index value, limited to the declared annual percentage cap. If the index percentage change is negative, 0% will be used as the index percentage change. The resulting index percentage change is multiplied by the option s account value to determine the index interest credit. POINT-TO-POINT FIXED DECLARED RATE ON INDEX GAIN CREDITING OPTION The declared rate compares the value of the S&P 500 Index at the beginning and end of the one-year indexed crediting period. If the change of those two values is positive, by any amount, the declared interest rate is credited to the option s account value. If the change of those two values is zero or negative, no interest will be credited to the option s account value. The interest rate is set annually by the company in advance of the indexed crediting period. 6

8 Hypothetical Examples The following examples are not intended to be representations of past or future performance of FG AccumulatorPlus 0. These examples use hypothetical caps and index value changes. Steadily increasing index Assume the index rises steadily. FG AccumulatorPlus 0 s indexed-linked formula results in the following hypothetical interest credit for the indexed interest options shown below: MONTHLY POINT-TO-POINT WITH A CAP Month Index Monthly Change in Index %.03% 0.% 0.3% 0.% 0.76% 0.6% 0.37% 0.0% 0.93%.3% 0.59%.0% monthly cap rate =.00%.03% 0.% 0.3% 0.% 0.75% 0.6% 0.37% 0.% 0.93%.3% 0.59%.00% Total of monthly capped changes 7.73% Annual Interest Credit - Monthly Point to Point 7.73% Sharply increasing index Assume the index rises sharply. FG AccumulatorPlus 0 s indexed-linked formula results in the following hypothetical interest credit for the indexed interest options shown below: MONTHLY POINT-TO-POINT WITH A CAP Month Index Monthly Change in Index %.85% -0.%.68% 7.0% 0.33% 0.6%.83% 0.79% -0.09% 7.36% 0.59% 0.8% monthly cap rate = -0.%.68% 0.33% 0.6%.83% 0.79% -0.09% 0.59% 0.8% Total of monthly capped changes.80% Annual Interest Credit - Monthly Point to Point.80% MONTHLY AVERAGE WITH A CAP annual cap rate = 5.50% Avg. of monthly values % 3.9% Annual Interest Credit - Monthly Average 3.9% MONTHLY AVERAGE WITH A CAP annual cap rate = 5.50% Avg. of monthly values % 5.50% Annual Interest Credit - Monthly Average 5.50% ANNUAL POINT-TO-POINT WITH A CAP 97.0 annual cap rate = 5.00% 8.0% 5.00% Annual Interest Credit - Annual Point to Point 5.00% ANNUAL POINT-TO-POINT WITH A CAP 6.5 annual cap rate = 5.00% 5.7% 5.00% Annual Interest Credit - Annual Point to Point 5.00% DECLARED RATE ON INDEX GAIN 97.0 Rate Credited declared rate = 4.50% 8.0% 4.50% Annual Interest Credit - Declared Rate 4.50% DECLARED RATE ON INDEX GAIN 6.5 Rate Credited declared rate = 4.50% 5.7% 4.50% Annual Interest Credit - Declared Rate 4.50% 7

9 Upside Potential + Principal Protection and a minimum interest guaranteed on surrender value With the annual reset feature, all gains from previous years are locked in your account will never decrease as long as no withdrawals are made! Steadily increasing and a sharp drop in the index Assume the index rises steadily, sharply drop and then sharply increases. FG AccumulatorPlus 0 s indexed-linked formula results in the following hypothetical interest credit for the indexed interest options shown below: MONTHLY POINT-TO-POINT WITH A CAP Month Index Monthly Change in Index % monthly cap rate = 9.5% 3.83%.8% 8.% -3.54% 6.% -4.%.9%.9% 6.6%.59%.67%.8% -3.54% -4.%.9%.9%.59% Total of monthly capped changes 0.3% Annual Interest Credit - Monthly Point to Point 0.3% Decreasing index Assume the index decreases throughout the year and ends with a decrease. FG AccumulatorPlus 0 s indexed-linked formula results in the following hypothetical interest credit for the indexed interest options shown below: MONTHLY POINT-TO-POINT WITH A CAP Month Index Monthly Change in Index % monthly cap rate = -0.75% 3.83%.8% 8.% -3.54% 6.% -4.%.9% -5.45%.46%.05%.67% -0.75%.8% -3.54% -4.%.9% -5.45%.46%.05% Total of monthly capped changes -0.88% Annual Interest Credit - Monthly Point to Point 0.00% MONTHLY AVERAGE WITH A CAP Avg. of monthly values annual cap rate = 5.50% 5.9% 5.50% Annual Interest Credit - Monthly Average 5.50% MONTHLY AVERAGE WITH A CAP Avg. of monthly values annual cap rate = 5.50% -9.36% -9.36% Annual Interest Credit - Monthly Average 0.00% ANUAL POINT-TO-POINT WITH A CAP 3.73 annual cap rate = 5.00% 4.86% 5.00% Annual Interest Credit - Annual Point to Point 5.00% ANUAL POINT-TO-POINT WITH A CAP annual cap rate = 5.00% -0.04% -0.04% Annual Interest Credit - Annual Point to Point 0.00% DECLARED RATE ON INDEX GAIN 3.73 Rate Credited declared rate = 4.50% 4.86% 4.50% Annual Interest Credit - Declared Rate 4.50% DECLARED RATE ON INDEX GAIN Rate Credited declared rate = 4.50% -0.04% 0.00% Annual Interest Credit - Declared Rate 0.00% 8

10 Contracts issued by Fidelity & Guaranty Life Insurance Company, Baltimore, MD. Fidelity & Guaranty Life Insurance Company offers a diverse portfolio of fixed and indexed interest and optional additional features. Before purchasing, consider your financial situation and alternatives available to you. Your Fidelity & Guaranty Life Insurance Company financial professional can help you determine the best alternatives for your goals and needs, or visit us at for more information. Form numbers: API-08(06-), ACI-08(06-); et al. Optional provisions and riders may have limitations, restrictions and additional charges. Subject to state availability. Certain restrictions may apply. This product is offered on a group or individual basis as determined by state approval. Terms and conditions are set forth in the group certificate and master contract and are subject to the laws of the state in which they were issued. This document is not a legal contract. For the exact terms and conditions, please refer to the annuity contract. S&P 500 is a trademarks of The McGraw-Hill Companies, Inc. and has been licensed for use by Fidelity & Guaranty Life Insurance Company. Standard & Poor s does not sponsor, endorse, promote, or make any representation regarding the advisability of purchasing the contract. Information provided regarding tax or estate planning should not be considered tax or legal advice. Consult your own tax professional or attorney regarding your unique situation. Annuities are long-term vehicles to help with retirement income needs. Indexed interest rates are subject to a cap. Caps are subject to change at the discretion of Fidelity & Guaranty Life Insurance Company. Interest rates subject to change at insurer s discretion and are effective annual rates. You are purchasing a fixed indexed annuity contract that provides minimum guaranteed surrender values. You should understand how the minimum guaranteed surrender values are determined and the product features used to determine the values. Even though contract values may be affected by external indices, the contract annuity is not an investment in the stock market and does not participate in any stock, bond, or equity investments No bank guarantee. Not FDIC/NCUA/NCUSIF insured. May lose value if surrendered early.